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When the bank pays off a $100 loan from the Fed OA the Fed's liabilities decrease by $100. OB. the monetary base increases by S100.
When the bank pays off a $100 loan from the Fed OA the Fed's liabilities decrease by $100. OB. the monetary base increases by S100. OC currency in circulation increases by 100. D. the monetary base decreases by $100. When a bank pays off its borrowings from the Fed, the amount of reserves in the banking syster drops
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